IDF skirts curbs issue

By Vaiju Naravane

PARIS, MAY 24. The two-day meeting of the India Development Forum 2000 concluded here today without any clear indication whether economic sanctions against India adopted by several donor nations in the aftermath of the Pokhran nuclear tests had been lifted. The head of the Indian delegation, Dr. E.A.S. Sarma, when asked about the reaction of donor nations said the question had not arisen.

``It is a fact that since sanctions were imposed new commitments have not been made for projects in India. But it is also a fact that for the on-going projects external aid flows have been coming. As a result of new commitments not coming in the portfolio of external aid for our projects has somewhat shrunk. But the emphasis at this year's meeting has been not on the quantum of aid but on the manner in which the existing flows can be leveraged, the manner in which aid inflows can bring in new ideas and innovations. As far as the quantum of aid is concerned I am quite confident that we have been able to sensitise our friends on the other side, of the importance of poverty eradication projects in India and the need for stepping up concessional aid for these programmes.''

The World Bank's Country Director for India, Mr. Edwin Lim, said the bank was continuing to give loans to those States which were willing to help themselves and that new loans had been sanctioned recently. By next year, the bank expected to give India loans totalling some $3 billions making it the bank's biggest borrower. For the time being, however, certain restrictions continue to operate though the bank had

just sanctioned fresh loans to Karnataka, Uttar Pradesh and Andhra Pradesh.

A major innovation at the meeting was the impressive delegations from State Governments. For the first time States were invited to participate and share their experiences and visions for poverty eradication in India. The theme of the meeting was the reduction of poverty in India.

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